Suppose You Take Out a Loan for $9,000, at 12

question 2

Multiple Choice

Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period? (Round any fraction to the next higher day)

• A) 246 days
• B) 250 days
• C) 254 days
• D) 258 days

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Definitions:

Investment

The allocation of resources, usually money, in order to generate income or profit.

Present Value

The calculated value in current terms of an expected future cash flow or sum of money, discounting at a given rate of return.

Annual Interest Rate

The yearly rate charged by a lender to a borrower, expressed as a percentage of the principal loan amount.

Lottery Winnings

Income received from winning lotteries, which is often subject to taxation.